Heavy traffic: Chin urged the government to address congestion at immigration lanes, particularly in Johor Baru, as it affects the smooth flow of workers between Malaysia and Singapore. — THOMAS YONG/The Star
PETALING JAYA: The application process for the approval of projects, foreign investment and entry of knowledge workers are among the problems faced by the business community here.
They are calling for more efforts to cut government red tape to help them capitalise on the country’s healthy economic growth and the strengthening ringgit ahead of Budget 2025.
SME Association of Malaysia president Chin Chee Seong said that while the government delivery system had seen some improvements, there were still instances of approval processes taking up to a month or two to be finalised.
“Although some departments and agencies already have their client charters assuring approvals between five and seven working days, there are times when the process takes up to a month or two,” he said when contacted yesterday.
Such delays, he added, could hamper the approval process of development projects involving foreign investors and the entry of knowledge workers such as those from India or China.
“The procedure is the same but it must be done at different agencies, such as the Malaysian Investment Development Authority (Mida) and the Malaysian Digital Development Corporation (MDEC),” he said.
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Chin suggested the use of AI for certain application processes as it could provide a fixed time frame for companies to get a response from the relevant department or agencies.
“Making a direct call to a department or agency to get a response from an officer can be difficult at times.
“It would be more efficient if AI is used to provide a response without the need to go through an officer,” he added.
Call for improvement: Chin and Nivas say approval processes need to be finetuned.
Chin also appealed to the government to address congestion at immigration lanes, particularly in Johor Baru, as it is affecting the smooth flow of workers between Malaysia and Singapore.
“All this require funds and I hope Budget 2025 will include allocations to find ways to speed up applications process, including expanding the immigration lanes in Johor Baru,” he added.
Prime Minister Datuk Seri Anwar Ibrahim has in recent months made repeated calls for government departments and agencies to fast-track approvals without compromising regulations, particularly for projects involving foreign investment and those benefiting the rakyat.
On Friday, Anwar again emphasised the need to expedite business approvals, advising civil servants to avoid using bureaucratic procedures as a justification for delays.
The Associated Chinese Chambers of Commerce and Industry Malaysia (ACCCIM) deputy president Datuk Ng Yih Pyng said most businesses faced delays because they had to make multiple applications to different agencies for approvals.
He suggested that Budget 2025 should include policy announcements for the relevant departments and agencies to work in concert instead of operating in silos.
The procedures should be streamlined and better coordinated at the federal, state and local government levels, he added.
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“For example, routine application processes can be done through an auto approval system such as eservice,” he said.
Kuala Lumpur and Selangor Indian Chamber of Commerce president Nivas Ragavan said overlapping and redundant requirements in applications processes had resulted in delays.
“Priority should be given to simplifying existing regulations by conducting a thorough review of the procedures to eliminate redundant requirements.
“This could be done by setting up a special task force dedicated to identifying and addressing bureaucratic bottlenecks,” he said.
He added that simplification was crucial for the construction and manufacturing industries, which require speedy approvals.
“For instance, delays in obtaining building permits can stall projects and increase their costs at the expense of economic growth,” he said.
Nivas, who is also Federation of Malaysian Business Association (FMBA) vice-chairman, said allocations could also be set aside to implement a “single-window” system for application approvals.
“Let’s adopt a system that consolidates multiple application processes into a single step by leveraging technology for automated approvals.
“Setting clear timelines for decisions will enhance accountability and efficiency,” he added.
